THE NATIONAL FINANCES

Wairarapa Times-Age, 17 May 1938, Page 7

THE NATIONAL FINANCES

MINISTER PRESENTS FIGURES FOR PAST YEAR

Considers that Position is Good

REVENUE TOTAL OF OVER £36,000,000, AND SURPLUS OF £BlO,OOO.

(By Telegraph.—Press Association.)

WELLINGTON, This Day. * A surplus of £BlO,OOO in the public accounts for the financial year ended March 31 was announced by the Minister of Finance, the Hon W Nash in a public address at Lower Hutt last night. Revenue for Xe year ’ amounted to £36,059,000, and expenditure to £35,249,000 The Minister said the accounts were still subject to audit, and that when completed they would be published in full. The accounts for the past financial year, said Mr Nash, were those for the second and complete year and the third year of presentation by the Labour Government. The position was good. The Government had placed a further £854,000 to reserves, and every penny of outside floating debt that was due had been repaid. Treasury bills to the trading banks due on April 16, amounting to £BOO,OOO, had also been met on dUe F d imres given by the Minister showed that the reduction in the public debt amounted to £4,382,000. New borrowing during the financial year for public works, forestry, housing, etc., amounted to £7,492,000, and debt redeemed to £11,874,000.

The revenue and expenditure figures for the year were as follows: REVENUE. £ Customs 10,759,000 Beer duty 978,000 Sales tax 3,499,000 Film hire tax 82 > 000 Gold export duty 105,000 Highways 2,839,000 Stamp and death duties .... 3,240,000 Land tax 1-038,000 Income tax 9,079,000 Miscellaneous 45,000 Total taxation £31,664,000 Interest receipts 2,141,000Other receipts 2,254,000 Grand total £36,059,000 EXPENDITURE. £ Debt services 9,441,000 Exchange 1,828,000 Transfer highways revenue 2,835,000 Other permanent appropriations 1,517,000 £15,621,000 Social services 11,872,000 Other votes ... 7,756,000 £19,628,000 Grand total' £35,249,000 Surplus ; £Blo ’ ooo ■ In the course of a detailed analysis, Mr. Nash said that income taxation was largely responsible for the surplus of £BlO,OOO. The estimate of income tax revenue was £7,500,000 and the actual yield £9,079,000. This last figure included £644,500 of arrears. “I am more than gratified with the

financial results for the past year,” said Mr Nash, ‘‘and it is satisfactory to know that the Government has been able to give effect to its policy and at; the same time to produce a surplus in the national accounts for the second complete year in succession.”

The Minister said the comparisons between 1936-38 showed the progress that had been made. The only increase in taxation had been the reintroduction of the graduated land tax, and the alteration of the incidence of income tax. A comparison of the major items showed that Customs taxation had increased by £2,600,000, sales tax by £1,000,000, land tax by £600,000 and income tax by £4,500,000. With minor increases on other items there was a total increase of £10,107,000.

It might be asked where had the money gone? Debt charges absorbed £lOO,OOO, and £BOO,OOO had gone to reserves. Increased administration expenditure was as £560,000; finance, £144,000; justice and police, £235,000; defence, £590,000; public works maintenance, £950,000,'development of primary and secondary industries, £792,000; health, £520,000; education, £900,000; pensions, £2,700,000; highways, £730,000; exchange, £230,000. These items amounted to £9,251,000. Other minor items brought the total up to £9,360,000, which, with the £BOO,OOO surplus, approximately accounted for the additional £10,000,000 revenue. Some of the increase in expenditure items for the last year could be further analysed as follows:—The wheat subsidy cost, £179,000; milk in schools, £76,000; invalidity pensions, £348,000; old age pensions, £819,000; widows’ pensions, £59,000; war veterans, £50,000; war pensions, £114,000.